EA - What to Look for When Hiring Outsourced Accounting Services

What to Look for When Hiring Outsourced Accounting Services

It’s no surprise to hear that good financial tracking will have an impact on the success of your company. Managing the way the money is flowing in and out of your business will affect cash flow and other important aspects of running a company. Too often, entrepreneurs don’t have the necessary professional training, which is why they turn to outsourced accounting services for assistance.

How You Will Benefit from Outsourced Accounting Services

Is it the right choice for you to hire an outsourced accounting team? Most business owners don’t take this decision lightly. Not only will you be spending money on the services, but you are handing over sensitive financial information to the accounting team.

Even though it takes trust to bring in an accounting team for help, you won’t regret this decision. Here are some of the benefits you can expect when you find the right outsourced accountant to help with your financial tracking and strategy:

  • Expert Advice: You didn’t spend years in college studying accounting and bookkeeping, and it isn’t likely that you have years of hands-on experience in the industry. One of the greatest benefits of an outsourced accounting team is that they bring industry experience to the table. You can team up with the financial pros to leverage this experience in a way that helps your company grow. Outsourced accountants know the right way to set up your systems. They can implement effective processes to improve the efficiency of your financial reporting. Also, an expert outsourced accounting team will tailor your services to meet your needs, helping you create a system that is scalable to help with future growth.
  • Compliance, Regulations, and Laws: Most people are bored out of their minds when digging into details about tax laws and financial regulations. In addition to the Federal requirements for tax filing, you also need to pay attention to local regulations for the city and state where your business is located. These laws change each year, which can make it a challenge to stay current. The easiest and most effective way to ensure that your business is in compliance is by hiring outsourced accounting services for assistance. Your accounting team is immersed in these laws and regulations each day, and they understand the ins-and-outs of implementation for your company.
  • Manage Cashflow: One of the biggest challenges you will face is managing cash flow to ensure there is enough money in the bank to cover upcoming expenses. Even though money is coming in through sales and transactions, there can sometimes be a gap between the time when the money is received and when your expenses need to be paid. You can be bringing in a significant amount of money and still feel the financial stress if you are leveraged to the point where you don’t have the cash flow available for expenses. Outsourced accounting services can be beneficial to help you with the implementation of an effective strategy to anticipate upcoming expenses and ensure that you have cash in the bank account for those needs.
  • Boost Productivity: How many hours per week are you spending on bookkeeping and accounting tasks? Taking a DIY approach for your business accounting means that you are burning precious hours that could be spent on other responsibilities. For example, if you are spending 10 hours per week on bookkeeping, then it means that you are missing out on 10 hours per week that could be dedicated to business development, customer acquisition, and more. Pass off the accounting and bookkeeping responsibilities to an experienced team so that you can focus your efforts on other important tasks.
  • Reducing Business Expenses: Tracking your transactions is one of the first (and most important) steps in managing your budget. When you can see where the money is being spent, it is easier to adjust your spending habits so that you can be in control of your business finances. Every penny spent on business expenses cuts into your profit margins. An outsourced accounting team can help you with the tracking and budgeting implementation to support your long-term goals.
  • Minimize Overhead: Also, consider the way outsourced accounting services can be used to minimize your overhead costs. When you can see that accounting skills are needed in your company, it is easy to mistakenly think that you need to bring in another employee to help. But adding another employee to payroll can be a heavy financial burden, especially for small businesses and startups. Instead of taking on the fully burdened cost of a salary and benefits, you can invest a smaller amount in outsourced accounting. These services give you access to the full range of skills that are needed, at a much lower cost.

As you look through this list, are you seeing why it is worth the cost to invest in accounting services? Now it’s time to make the investment in an accounting team that can help with your business goals.

Tips for Hiring Outsourced Accounting Services

Instead of hiring the first accounting team that you can find, it is beneficial to be strategic in the way you choose outsourced accounting services. Here are a few things that you should be looking for when you are comparing service providers in the accounting and bookkeeping industry:

  • Licensing and Certifications: Does the team that you are hiring hold the right certifications and licensing? Holding an accounting degree means that your accountant is a true professional. Many people can say they are experienced in financial strategy, but the certifications show the years of training and education that went into the accountant’s development.
  • Reputation: You are entrusting your financial information to the accounting team, so it is important that you can trust the company. Investigate the reputation of the company to be sure that you are bringing in a team that holds the highest levels of accountability when it comes to protecting your information. Reputation is a non-negotiable when hiring an accountant because the provider will have access to your financial information and sensitive details about your business.
  • Scope of Services: What services are needed for your company? You need to have clarity about the financial services that will support your goals, to ensure that you are hiring a team that provides the skills that are needed. You might have a handle on the ongoing bookkeeping tasks, so you just need an accounting team to fill in the gaps with tax strategy, tax preparation, and filing services. Or, you might be looking for full-service solutions that include payroll processing, bookkeeping, account reconciliations, financial strategy, and more. Find a team that fits your individual needs.
  • Experience and Specialties: For example, it can be beneficial to choose an outsourced accounting team that specializes in small business services if you are an entrepreneur or a startup company. Experience with larger corporate entities differs from the services needed for a small business.
  • Accounting Tools and Technology: Be cautious if an accounting team wants to implement a system that relies on manual calculations. We live in a modern business world with many online tools to support automation. A good accounting team will implement a proven software program that streamlines your transactions as much as possible, paired with professional services for bank account reconciliation, strategy, and more.
  • Pricing: Also, consider the amount of money that you will be spending on the services. Not only do you need to look at the price tag, but it is important that you consider the value and services provided for that cost. Remember that outsourced accounting services are an investment for your business. While it is important to be careful about the amount of money spent on the services, you also need to identify the way these services will boost profitability and help you save money.
  • Customer Focus: It is important that you can get someone on the phone if you have questions about your business finances. When you are hiring an outsourced accountant, ask about questions and ongoing support through the year. One of the biggest mistakes you can make is only talking to your accountant once a year… at tax time. You will gain the most value through working with an accounting team that provides communication, support, and strategy implementation all year long.

Is the Timing Right to Hire an Outsourced Accountant?

How do you know when you should make the investment in an outsourced accountant? Timing is important, so you should always consider the needs of your company.

The truth is that it is never too early to invest in accounting services. Even if you are in the earliest stages of launching your new startup, an accounting team can be invaluable to help you get started on the right foot.

Our team at Easier Accounting specializes in small business accounting services. We’d love to talk to you about the way our services can be used to support your business needs. If you are considering the option to hire an outsourced accounting team, then we invite you to contact us to learn more. Call right away: (888) 620-0770.

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